Types Of Business Planning

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However, there are several types of partnerships (such as limited partnerships, discussed in the paragraph below) that will allow you to define the roles, responsibilities, and liability of each member.Although there are several different types of businesses, choosing one doesn't need to be difficult.Here are the 7 most commonly-used business types and some questions to help you pick which business type is right for your startup.A partnership does require that you register your business with your state and establish an official business name.After that, you'll then be required to obtain a business license, along with any other documentation that your state office can help you with.There are a number of books and resources for this.Many of them recommend using the Small Business Association as the starting point since they maintain local offices.A startup's choice of business structure can have long-lasting effects on the way the business is run and operates, including how it files taxes and whether it can hire employees.To help you decide, we've created a flowchart to walk you through the decision-making process: Decisions you'll need to make when choosing a business type: After you've answered these questions and have decided which type of business is best for your startup, the next steps are dependent on your state and local laws and ordinances, as you may need to fill out additional forms specific to your location and type of business.A sole proprietorship is a business owned and operated by a single person, and require no registration.If you're operating a one-person business, you're automatically considered a sole proprietor by the government.

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